Rupee fell to a record low against the US dollar, touching 92.35 in recent trading sessions as global economic factors and rising crude oil prices put pressure on the currency.
In the interbank foreign exchange market, the rupee weakened sharply during the session and hit the new all-time low of 92.35 against the dollar. The fall reflects growing pressure on emerging market currencies amid global uncertainty.
One of the key reasons behind the rupee’s decline is the rise in international crude oil prices. India imports a large share of its crude oil requirements, and higher oil prices increase the country’s import bill. This leads to higher demand for dollars to pay for imports, which in turn weakens the rupee.
The strength of the US dollar in global markets has also contributed to the fall. Investors often move their funds to the dollar during periods of uncertainty, as it is considered a safer asset. As demand for the US currency rises, other currencies including the rupee tend to weaken.
Foreign fund outflows from Indian equity markets have further added to the pressure on the rupee. When foreign investors sell Indian assets and withdraw money from the market, demand for dollars increases, pushing the rupee lower.
Geopolitical tensions in West Asia have also influenced currency movements. Rising tensions in the region have led to volatility in global financial markets and a surge in crude oil prices, both of which affect the Indian currency.
However, the rupee showed a slight recovery in early trade on the following day. It opened stronger at around 92.11 against the US dollar, supported by some improvement in market sentiment.
Currency experts say the rupee may continue to remain volatile in the near term.
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